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Pros and Cons of Vacation Rentals

Vacation rentals in Montrose can mean a big payoff. But there are some factors to consider before investing in one.Acquiring a Montrose vacation home can be a really appealing notion. You can have a place of your own when you go on vacation and you can rent it out to others the rest of the year to help with expenses. Certainly, anyone who has owned and rented out a vacation home can definitely tell you that it doesn’t really work out that way. There are a lot of pros and cons to owning one or more vacation rentals that you should grasp. Just before jumping into vacation rental ownership, it’s significant to look into all the advantages and downsides.

Pro: Extra Income & Tax Breaks

Maybe one of the biggest advantages of owning a vacation rental is the extra income you can make from renting it out. Conditional on whether you decide to rent it out short-term (days or weeks at a time) or long-term (several months at a time), you could perhaps earn enough that the property more or less pays for itself.

Con: Another Mortgage Payment & Expenses

Without a doubt, investing in a vacation rental comes with a mortgage payment, insurance, property taxes, utilities, and other expenses. All of these must be taken into account when you are deciding to obtain a vacation rental. Additionally, financing for an investment property can cost more since lenders often require a larger down payment and charge higher interest rates on second homes.

Pro: It’s Yours to Use

Procuring a vacation home indicates that it’s yours to make use of whenever you like. This can be suitable if you consistently visit the same location and don’t like to stay in hotels. You can likewise use the property for business or personal events, meaning you won’t have to pay to rent event space somewhere else.

Con: Marketing and Screening Tenants

Supposing you are not taking advantage of your vacation home right now, you’ll want to market it to find tenants to occupy it for the rest of the time. Marketing can be a time-consuming task, as is screening potential tenants. This is mainly true if you take into consideration renting your vacation home out for days or weeks at a time. With so much turnover, searching for enough tenants to rent the home year-round can be a real issue.

Pro: Building Your Retirement Fund

Investing in rental real estate is one of the best means to grow and expand a healthy retirement fund safely. Rental property owners usually count their rental income or property sale into their retirement plans. Unlike the volatile stock market or savings accounts with little interest, rental real estate offers a combination of safety and growth that no other investments can compare with.

Con: Property Management Takes Time

The big gain of owning a vacation rental will effortlessly happen after years of property management, which might be a lot of work. This is precisely true if you are trying to keep your property clean and maintained yourself or your vacation rental is not at a convenient distance from your primary residence. Lots of vacation rental owners are unprepared at just how much time it takes to prepare for each new tenant, a process that transpires far more frequently than with long-term residential rentals.


There are lots of acceptable reasons to acquire a vacation home and rent it out. And, in spite of the fact there are certain downsides, hiring the right property management company can help you avoid most of them. Would you like to learn more about smart approaches to managing vacation rental properties? Real Property Management Now has a top-notch team of Montrose property managers to help you navigate the market as well as keep your vacation rental profitable. Contact us online or call at 970-314-7123 today!

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